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Middle East Buyers Eye Canadian LNG Amid Geopolitical Fears
🇸🇦 Saudi Arabia /Elections & Politics

Middle East Buyers Eye Canadian LNG Amid Geopolitical Fears

From Asharq Al-Awsat · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Middle Eastern buyers are seeking Canadian liquefied natural gas (LNG) due to geopolitical concerns.
  • Pacific Energy, which has a stake in Canada's Woodfibre LNG project, is fielding inquiries from these buyers.
  • The interest highlights a global trend of diversifying LNG supply sources away from regions with geopolitical chokepoints.

Buyers in the Middle East are actively seeking liquefied natural gas (LNG) from Canada, viewing it as a crucial hedge against escalating geopolitical turmoil. Ratnesh Bedi, president of Singapore-based Pacific Energy, which holds a 70% stake in the Woodfibre LNG project under construction in British Columbia, revealed that his company is receiving numerous inquiries.

Almost every week, someone is approaching us to say, 'hey, do you still have capacity?'

— Ratnesh BediPresident of Pacific Energy, highlighting the high demand for Canadian LNG.

Even though Woodfibre's entire 2.1 million tons per year capacity is already contracted to BP, the demand from the Middle East is significant. Bedi noted that inquiries are coming not only from North Asia but also, surprisingly, from LNG suppliers in the Middle East itself, who are looking for alternative supplies for their own customers. This interest reflects a broader global shift as buyers aim to diversify their energy sources.

Very interestingly, not only is it north Asia that is coming, but to my surprise, even LNG suppliers out of Middle East are coming to find alternate supplies for their customers.

— Ratnesh BediExpressing surprise at the breadth of interest in Canadian LNG, including from Middle Eastern suppliers.

The disruptions caused by the war in Iran and potential threats to the Strait of Hormuz have prompted a reassessment of supply chain security. Even major LNG-producing regions in the Middle East are now seeking backup supplies from routes perceived as free from geopolitical risks. Bedi emphasized that buyers are increasingly focused on geographic diversification, allowing them to secure short-term emergency supplies without relying solely on the volatile global spot market.

The federal government has heard strong interest from Middle Eastern companies in pursuing both LNG equity investments and offtake deals.

— Charlotte PowerSpokeswoman for Canada's Energy Minister, confirming government awareness of Middle Eastern interest.

Canada's west coast LNG industry, in particular, benefits from its location, offering shorter shipping times to Asian markets and avoiding geopolitical chokepoints. A spokesperson for Canada's Energy Minister confirmed that Middle Eastern companies have expressed interest in both investing in Canadian LNG projects and securing physical cargoes, signaling a growing international confidence in Canada as a stable and reliable energy supplier.

(Buyers) are looking at what-if scenarios. They are thinking, 'tomorrow, if something goes wrong, I should already be a customer of Canada.'

— Ratnesh BediExplaining the strategic thinking behind buyers seeking Canadian LNG as a reliable alternative.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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